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AUREA INSIGHTS

Public loan or grant: what is the difference?

Both can support investment. Their effect on your financing is different.

A loan remains a repayment obligation

A public loan generally still has to be repaid. Risk sharing for the bank does not cancel your debt.

Grants come with conditions

Grants cover defined eligible costs and evidence requirements. Breaching conditions can lead to recovery. Do not assume a payment date without checking.

Look at the whole funding plan

Consider equity, bridge funding, the remaining loan and permitted combinations together. The highest grant percentage is not automatically the best solution.

Detailed programme rules: KfW StartGeld ↗ · KfW EEW ↗